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A collection agency is a business that pursues payments on debts owed by individuals or businesses. Most collection agencies operate as agents of creditors and collect debts for a fee or percentage of the total amount owed. There are many types of collection agencies, beginning with first-party agencies who are often times subsidiaries of the original company the debt is owed. Third-party agencies are separate companies contracted by a company to then collect the debts on their behalf for a fee. Another growing industry is debt buyers in which the agency purchases the debt at a fraction of its initial value then collects upon it. Each country has their own rules and regulations regarding collection agencies and their practices which are quite often very aggressive. From Wikipedia, the free encyclopedia : Credit and collection agencies |
